The functional water market is anticipated to grow at a 6.2% CAGR from 2023 to 2033, expanding from USD 15.2 billion in 2023 to USD 27.3 billion by 2033.

Rising demand for flavored functional water, known for its refreshing taste, enhanced nutritional profile, and superior flavor, is fueling this growth. Popular flavors such as lemon, berry, and lime are particularly driving the segment’s expansion.

Innovations in flavor and packaging are significantly driving the growth of the functional water market. Flavored functional waters, which enhance mental stamina by reducing stress and promoting relaxation, are increasingly popular among health-conscious consumers. This trend is supported by market players focusing on low-calorie options and investing in robust product marketing.

Key drivers of market expansion include the benefits of healthy hydration, nutritional value, and the refreshing qualities of functional ingredient-infused water. Notable advancements in this category include products designed to improve sleep quality and support body detox. Functional beverages have gained preference over traditional soft drinks due to their lower sugar content and absence of synthetic ingredients like artificial colors, flavors, and preservatives.

The rising demand for fortified beverages enriched with essential nutrients such as vitamins, minerals, amino acids, and proteins is expected to drive the growth of the functional ingredient-enhanced water market. As consumers become increasingly aware of obesity and diet-related issues, the food and beverage industry is prioritizing the addition of fiber to drinks, aiming for benefits like calorie reduction, weight management, and improved digestive health.

The heightened public interest in health and wellness is shifting attention toward functional nutrition. Consumers are seeking fortified food and beverage options that offer additional benefits, such as enhanced energy, relaxation, mental focus, and overall health support. In response, manufacturers are leveraging the appeal of enriched waters by introducing products that deliver more than just vitamin-enhanced hydration. For instance, PepsiCo Inc. has launched Drift Well, a new beverage designed to promote relaxation before bedtime. This enhanced water contains 200 mg of L-theanine and provides 10% of the daily magnesium requirement.

Key Takeaways

  • The functional water market is expected to capture a CAGR of 6.2% during the forecast period 2023 to 2033.
  • Growing popularity of functional water among the working class and millennial population, as well as creative product advancements, are likely to improve and accelerate the market growth over the projection period.
  • North America dominated the functional water market.

Competitive Landscape

Prominent Players in the market

  • Danone
  • Coca-Cola
  • Pepsico
  • Dr. Pepper Snapple Vitamin Well AB
  • Triamino Brands LLC
  • New York Spring
  • Herbal Water
  • Vichy Catalan Corporation
  • San Benedetto
  • Unique Foods (Canada)

Key Developments

  • October 2022 – CENTR Brands Corporation announced the addition of CENTR Enhanced, a non-CBD functional sparkling water, to its growing array of health and wellness products.
  • July 2022 – As a part of Flow Beverage Corp.’s most recent product launch, the Flow Vitamin-Infused Water range of products was offered to consumers in three new organic flavors: Cherry, Citrus, and Elderberry.
  • March 2022 – Nirvana Water Sciences Corp.  introduced their Nirvana HMB + Vitamin D3 spring water as part of Expo West in Anaheim, California. Nirvana HMB + Vitamin D3 is one of the most recent additions to the repertoire. It provides both muscular rehabilitation and immunological support.
  • May 2021 – PepsiCo Inc., a renowned worldwide food and beverage business, introduced Soul boost, improved sparkling water produced with beneficial additives. The drink comes in two flavors: Lift and Ease. The Lift has 200 mg of ginseng, which aids in mental stamina, and Ease contains 200 mg of theanine, which aids in relaxation.
  • March 2021 – Nestlé S.A. announced the acquisition of Essentia Water, a premium functional water brand located in Washington. The company’s portfolio is being expanded to include international mineral and premium water brands, as well as healthy hydration products such as functional water.

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Key Segments Profiled in the Market

By Type:

  • Vitamin
  • Protein
  • Others

By Distribution Channel:

  • Specialty Stores
  • Supermarket/Hypermarket
  • Online Stores
  • Others

By Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • The Middle East and Africa

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Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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